Shell (RDS.A) has pulled out of talks to acquire a stake in Anadarko Petroleum's (APC) gas...

Shell (RDS.A) has pulled out of talks to acquire a stake in Anadarko Petroleum's (APC) gas discoveries off the coast of Mozambique in East Africa, due to a high price. Instead, Shell will focus on projects off the coasts of Benin, Gabon and South Africa on the other side of the continent. While these projects are more uncertain, they could be more lucrative, as West African prospects tend to provide more oil than gas.

Benin, Gabon - neither has shown any potential for a massive gas find on the scale of Mozambique.

South Africa deepwater - highly speculative.

Deepwater Nigeria - the gas is there but approvals take far too long for any meaningful medium term impact on Shell's financials. Shell discovered the super giant 'Bonga Southwest' oil field in 2001 (deepwater Nigeria). Twelve years later they are nowhere even close to a FID.

Shell either needs the big acquisition - or risks being gobbled up itself. And if not Mozambique - where ?

Shell is a horribly bureaucratic company. There is no basis for ANY kind of merger with ANY mid-sized US oil company. Companies like Shell and BP are like socialistic dinosaurs. Maybe they are a bit better now but I doubt it.